TORONTO-Nortel Networks Corp. announced a share dividend and a new chairman of the board, but it offered little in the way of strategic guidance during its annual shareholders meeting. Nortel investors-those who suffered through the company’s accounting woes-used the meeting to express their frustration with the company, according to reports.
During a press conference after the shareholder meeting, Nortel executives discussed the company’s need to cut costs, improve revenues and counteract the challenges from low-cost Asian suppliers. However, executives offered few concrete indications of how the company would execute on its goals.
Nortel’s stock was down slightly in trading Thursday to about $2.63 per share.
In conjunction with its annual shareholder meeting, Nortel declared a dividend on each of its outstanding cumulative redeemable Class A preferred shares series 5 and its outstanding non-cumulative redeemable Class A preferred shares series 7. Separately, the company announced it appointed Harry Pearce as its non-executive chairman of the board. Pearce replaces Lynton Wilson, who had served as chairman since November 2001.
“Nortel is at the center of the breakthrough technologies that are advancing global communications,” Pearce said. “I am a firm believer in Bill Owens’ leadership, the passion and commitment of Nortel employees, and the ability of this company to continue as a driving force in the communications industry. I look forward to the opportunities ahead in rebuilding shareholder value and confidence.”
